Table of Contents
Which of the following was not prohibited by Sherman Act?
The Sherman Act outlaws “every contract, combination, or conspiracy in restraint of trade,” and any “monopolization, attempted monopolization, or conspiracy or combination to monopolize.” Long ago, the Supreme Court decided that the Sherman Act does not prohibit every restraint of trade, only those that are …
What makes a monopoly illegal?
In United States antitrust law, monopolization is illegal monopoly behavior. The main categories of prohibited behavior include exclusive dealing, price discrimination, refusing to supply an essential facility, product tying and predatory pricing.
What companies have been broken up by antitrust laws?
It broke the monopoly into three dozen separate companies that competed with one another, including Standard Oil of New Jersey (later known as Exxon and now ExxonMobil), Standard Oil of Indiana (Amoco), Standard Oil Company of New York (Mobil, again, later merged with Exxon to form ExxonMobil), of California (Chevron).
Courts will usually look at a company’s market share for a particular product or service to see if a monopoly exists. If a company has a market share of greater than 75 percent, they will probably be considered a monopoly.
Which of the following is a violation of the Sherman Act?
The most common violations of the Sherman Act and the violations most likely to be prosecuted criminally are price fixing, bid rigging, and market allocation among competitors (commonly described as “horizontal agreements”).
What is the Sherman Antitrust Act in simple terms?
Definition. The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace. The Sherman Act was amended by the Clayton Act in 1914.
Why can’t you have a monopoly?
Monopolies are often discouraged in free-market nations. They are seen as leading to price-gouging and deteriorating quality due to the lack of alternative choices for consumers. They also can concentrate wealth, power, and influence in the hands of one or a few individuals.
Can businesses have a monopoly?
A monopoly is when a company has exclusive control over a good or service in a particular market. For example, businesses might legally corner their market if they produce a superior product or are well managed. Antitrust law doesn’t penalize successful companies just for being successful.
WHY WAS AT and T broken up?
This was due to several reasons — the much cheaper rates for transmission offered by satellite operators that were not influenced by the high tariffs set by AT for broadcast customers, the split of the Bell System into separate RBOCs, and the end of contracts that the broadcast companies had with AT.
What made the Sherman Antitrust Act ineffective?
The law prohibited contracts, combinations and conspiracies in restraint of trade. The act was ineffective due to intentionally vague language by Congress who passed it to placate the public rather then really restrain corporate power.
Is a 75% market share a monopoly?
A monopoly is a form of market structure where only one or very few companies dominate the total sales of a particular product or service. A market share greater than 75 percent indicates monopoly power, a share less than 50 percent does not, and shares between 50 and 75 percent are inconclusive in and of themselves.
Why is Disney not a monopoly?
This is perhaps the best case for why Disney’s monopoly status is a problem even for fans of Disney and its subsidiaries: The lack of powerful competition means Disney simply doesn’t have to make as many films. Reduction in the quantity of movies doesn’t mean an increase in quality; it may well mean the opposite.